The revenue streams for a storage project will depend on the relevant electricity market, technology, project size and whether the project is applied ‘behind’ the meter to serve the needs of a specific Site or connected to the grid. Storage is typically able to capture value in some or all of the following ways:

1. •

   the provision of grid services (frequency Response, Capacity Market revenues, demand-side response)

2. •

   market price arbitrage,

3. •

   the smoothing of generation output and avoidance of imbalance costs in a hybrid project where an underlying (and typically intermittent) electricity generation facility is co-located with a storage facility

These forms of revenue are all explained in more detail below.

Investors will want the flexibility to ‘stack’ (ie combine) revenues, perhaps relying on different income sources at different times of day or year, while debt financiers will be looking for a longer-term base contracted revenue-stream to under-pin the debt repayment and/or assessing the management experience and creditworthiness of the corporate entity.

In Great Britain (GB), despite support